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Westamerica Bancorporation Reports Third Quarter 2013 Earnings

SAN RAFAEL, Calif., Oct. 16, 2013 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq:WABC), parent company of Westamerica Bank, generated net income for the third quarter 2013 of $16.7 million and diluted earnings per common share ("EPS") of $0.63. Third quarter 2013 results compare to net income of $17.1 million and EPS of $0.64 for the prior quarter, and net income of $20.0 million and EPS of $0.73 for the third quarter 2012.

"Westamerica generated a relatively high annualized return on common equity of 12.4 percent in the third quarter 2013. These returns were generated in spite of the continued pressure low market interest rates are placing on our interest margin, which was 4.01 percent for the third quarter 2013. The credit quality of our assets continues to demonstrate improvement with net loan charge-offs declining from $10.0 million in the first nine months of 2012 to $4.7 million for the first nine months of 2013," said Chairman, President and CEO David Payne. "We remain focused on controlling noninterest expenses, which declined $1.5 million for the third quarter 2013 compared to the third quarter 2012. Westamerica paid a $0.37 per common share dividend for the third quarter 2013, and retired 256 thousand common shares during the quarter using our share repurchase plan," added Payne.

Net interest and fee income on a fully taxable equivalent (FTE) basis was $41.2 million for the third quarter 2013, compared to $42.6 million for the prior quarter and $48.7 million for the third quarter 2012. The change in net interest and fee income (FTE) is due to reductions in yields on loans and investment securities, which have declined during this period of low market interest rates. The change in net interest and fee income (FTE) is also attributable to reduced loan volumes, placing greater reliance on lower-yielding investment securities. Loan volumes have declined due to problem loan workout activities, particularly with purchased loans, and reduced volumes of loan originations. In Management's opinion, current levels of competitive loan pricing do not provide adequate forward earnings potential, and competitive loan underwriting standards have loosened which increases credit risk. Management is avoiding these low-yielding higher-risk loans. To offset the decline in interest and fee income (FTE), interest expense has been lowered by reducing the volume of higher-cost funding sources. The annualized interest cost of funding the Company's loans and investment securities was 0.11 percent for the third quarter 2013 compared to 0.12 percent for the prior quarter and 0.13 percent for the third quarter 2012. The annualized net interest margin on a fully taxable equivalent basis was 4.01 percent for the third quarter 2013, compared to 4.12 percent for the prior quarter and 4.67 percent for the third quarter 2012.

The provision for loan losses was $1.8 million for both the third quarter 2013 and the prior quarter, down $1.0 million from $2.8 million for the third quarter 2012. Net loan losses charged against the allowance for loan losses totaled $810 thousand for the third quarter 2013, compared to $1.2 million for the prior quarter and $3.4 million for the third quarter 2012. At September 30, 2013, the allowance for loan losses totaled $31.9 million; nonperforming originated loans totaled $7.3 million; nonperforming purchased FDIC-indemnified loans totaled $26.3 million, net of purchase discounts of $2.0 million; and nonperforming purchased non-indemnified loans totaled $3.4 million, net of purchase discounts of $401 thousand.

Noninterest income for the third quarter 2013 totaled $14.4 million, compared to $14.3 million for the prior quarter and $14.6 million for the third quarter 2012.

Noninterest expense for the third quarter 2013 totaled $27.8 million, compared to $28.2 million in the prior quarter and $29.3 million for the third quarter 2012. The expense reductions are primarily related to personnel and loan administration costs.

At September 30, 2013, Westamerica Bancorporation's tangible common equity-to-asset ratio was 8.6 percent, assets totaled $4.8 billion and loans outstanding totaled $1.9 billion. Westamerica Bancorporation, through its wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2012 filed on Form 10-K and quarterly report for the quarter ended June 30, 2013 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2011, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

Public Information October 16, 2013
WESTAMERICA BANCORPORATION
FINANCIAL HIGHLIGHTS
September 30, 2013
1. Net Income Summary.
(in thousands except per-share amounts)
%
Q3'13 Q3'12 Change Q2'13
Net Interest and Fee Income (FTE) $41,224 $48,712 -15.4% $42,628
Provision for Loan Losses 1,800 2,800 -35.7% 1,800
Noninterest Income 14,419 14,626 -1.4% 14,284
Noninterest Expense 27,758 29,269 -5.2% 28,192
Income Before Taxes (FTE) 26,085 31,269 -16.6% 26,920
Income Tax Provision (FTE) 9,347 11,247 -16.9% 9,808
Net Income $16,738 $20,022 -16.4% $17,112
Average Common Shares Outstanding 26,670 27,513 -3.1% 26,890
Diluted Average Common Shares 26,705 27,565 -3.1% 26,898
Operating Ratios:
Basic Earnings Per Common Share $0.63 $0.73 -13.7% $0.64
Diluted Earnings Per Common Share 0.63 0.73 -13.7% 0.64
Return On Assets (a) 1.37% 1.63% 1.42%
Return On Common Equity (a) 12.4% 14.7% 12.7%
Net Interest Margin (FTE) (a) 4.01% 4.67% 4.12%
Efficiency Ratio (FTE) 49.9% 46.2% 49.5%
Dividends Paid Per Common Share $0.37 $0.37 0.0% $0.37
Common Dividend Payout Ratio 59% 51% 58%
%
9/30'13YTD 9/30'12YTD Change
Net Interest and Fee Income (FTE) $127,687 $150,743 -15.3%
Provision for Loan Losses 6,400 8,400 -23.8%
Noninterest Income:
Loss on Sale of Securities -- (1,287) n/m
Other 42,981 44,115 -2.6%
Total Noninterest Income 42,981 42,828 0.4%
Noninterest Expense 84,627 88,651 -4.5%
Income Before Taxes (FTE) 79,641 96,520 -17.5%
Income Tax Provision (FTE) 28,520 34,529 -17.4%
Net Income $51,121 $61,991 -17.5%
Average Common Shares Outstanding 26,900 27,769 -3.1%
Diluted Average Common Shares 26,919 27,821 -3.2%
Operating Ratios:
Basic Earnings Per Common Share $1.90 $2.23 -14.8%
Diluted Earnings Per Common Share 1.90 2.23 -14.8%
Return On Assets (a) 1.41% 1.67%
Return On Common Equity (a) 12.7% 15.2%
Net Interest Margin (FTE) (a) 4.13% 4.89%
Efficiency Ratio (FTE) 49.6% 45.8%
Dividends Paid Per Common Share $1.11 $1.11 0.0%
Common Dividend Payout Ratio 58% 50%
2. Net Interest Income.
(dollars in thousands)
%
Q3'13 Q3'12 Change Q2'13
Interest and Fee Income (FTE) $42,400 $50,094 -15.4% $43,847
Interest Expense 1,176 1,382 -14.9% 1,219
Net Interest and Fee Income (FTE) $41,224 $48,712 -15.4% $42,628
Average Earning Assets $4,093,727 $4,160,953 -1.6% $4,147,096
Average Interest--
Bearing Liabilities 2,539,219 2,683,663 -5.4% 2,613,978
Yield on Earning Assets (FTE) (a) 4.12% 4.80% 4.24%
Cost of Funds (a) 0.11% 0.13% 0.12%
Net Interest Margin (FTE) (a) 4.01% 4.67% 4.12%
Interest Expense/
Interest-Bearing Liabilities (a) 0.18% 0.21% 0.19%
Net Interest Spread (FTE) (a) 3.94% 4.59% 4.05%
%
9/30'13YTD 9/30'12YTD Change
Interest and Fee Income (FTE) $131,334 $155,156 -15.4%
Interest Expense 3,647 4,413 -17.4%
Net Interest and Fee Income (FTE) $127,687 $150,743 -15.3%
Average Earning Assets $4,125,407 $4,116,471 0.2%
Average Interest--
Bearing Liabilities 2,605,404 2,773,066 -6.0%
Yield on Earning Assets (FTE) (a) 4.25% 5.03%
Cost of Funds (a) 0.12% 0.14%
Net Interest Margin (FTE) (a) 4.13% 4.89%
Interest Expense/
Interest-Bearing Liabilities (a) 0.19% 0.21%
Net Interest Spread (FTE) (a) 4.06% 4.82%
3. Loans & Other Earning Assets.
(average volume, dollars in thousands)
%
Q3'13 Q3'12 Change Q2'13
Total Assets $4,830,475 $4,892,088 -1.3% $4,840,319
Total Earning Assets 4,093,727 4,160,953 -1.6% 4,147,096
Total Loans 1,902,389 2,263,239 -15.9% 1,994,361
Commercial Loans 364,638 457,644 -20.3% 382,632
Commercial RE Loans 847,154 990,509 -14.5% 881,108
Consumer Loans 690,597 815,086 -15.3% 730,621
Total Investment Securities 2,191,338 1,897,714 15.5% 2,152,735
Available For Sale (Market) 1,049,962 716,369 46.6% 1,001,151
Held To Maturity 1,141,376 1,181,345 -3.4% 1,151,584
Unrealized (Loss) Gain (11,107) 31,614 n/m (9,669)
Loans/Deposits 46.1% 54.2% 48.3%
%
9/30'13YTD 9/30'12YTD Change
Total Assets $4,859,473 $4,965,611 -2.1%
Total Earning Assets 4,125,407 4,116,471 0.2%
Total Loans 1,990,937 2,368,530 -15.9%
Commercial Loans 383,907 491,023 -21.8%
Commercial RE Loans 877,490 1,042,613 -15.8%
Consumer Loans 729,540 834,894 -12.6%
Total Investment Securities 2,134,470 1,747,941 22.1%
Available For Sale (Market) 985,121 674,920 46.0%
Held To Maturity 1,149,349 1,073,021 7.1%
Unrealized (Loss) Gain (11,107) 31,614 n/m
Loans/Deposits 47.9% 56.1%
4. Deposits, Other Interest-Bearing Liabilities & Equity.
(average volume, dollars in thousands)
%
Q3'13 Q3'12 Change Q2'13
Total Deposits $4,130,881 $4,176,342 -1.1% $4,132,509
Noninterest Demand 1,699,169 1,605,362 5.8% 1,630,326
Interest Bearing Transaction 751,317 756,824 -0.7% 753,148
Savings 1,138,491 1,125,286 1.2% 1,148,193
Time greater than $100K 317,630 430,239 -26.2% 369,275
Time less than $100K 224,274 258,631 -13.3% 231,567
Total Short-Term Borrowings 56,844 61,794 -8.0% 61,076
Federal Home Loan Bank Advances 25,663 25,889 -0.9% 25,719
Term Repurchase Agreement 10,000 10,000 0.0% 10,000
Debt Financing 15,000 15,000 0.0% 15,000
Shareholders' Equity 534,634 542,708 -1.5% 538,529
Demand Deposits/
Total Deposits 41.1% 38.4% 39.5%
Transaction & Savings
Deposits / Total Deposits 86.9% 83.5% 85.5%
%
9/30'13YTD 9/30'12YTD Change
Total Deposits $4,153,956 $4,219,129 -1.5%
Noninterest Demand 1,657,819 1,586,993 4.5%
Interest Bearing Transaction 757,035 752,825 0.6%
Savings 1,148,306 1,128,309 1.8%
Time greater than $100K 358,874 481,072 -25.4%
Time less than $100K 231,922 269,930 -14.1%
Total Short-Term Borrowings 58,548 89,986 -34.9%
Federal Home Loan Bank Advances 25,719 25,944 -0.9%
Term Repurchase Agreement 10,000 10,000 0.0%
Debt Financing 15,000 15,000 0.0%
Shareholders' Equity 538,319 543,855 -1.0%
Demand Deposits/
Total Deposits 39.9% 37.6%
Transaction & Savings
Deposits / Total Deposits 85.8% 82.2%
5. Interest Yields Earned & Rates Paid.
(dollars in thousands)
Q3'13
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) $4,093,727 $42,400 4.12%
Total Loans (FTE) 1,902,389 25,633 5.35%
Commercial Loans (FTE) 364,638 5,761 6.27%
Commercial RE Loans 847,154 13,276 6.22%
Consumer Loans 690,597 6,596 3.80%
Total Investments (FTE) 2,191,338 16,767 3.06%
Interest Expense Paid
Total Earning Assets 4,093,727 1,176 0.11%
Total Interest-Bearing Liabilities 2,539,219 1,176 0.18%
Total Interest-Bearing Deposits 2,431,712 809 0.13%
Interest-Bearing Transaction 751,317 66 0.04%
Savings 1,138,491 228 0.08%
Time less than $100K 224,274 258 0.46%
Time greater than $100K 317,630 257 0.32%
Total Short-Term Borrowings 56,844 20 0.14%
Federal Home Loan Bank Advances 25,663 122 1.89%
Term Repurchase Agreement 10,000 25 0.98%
Debt Financing 15,000 200 5.35%
Net Interest Income and
Margin (FTE) $41,224 4.01%
Q3'12
Average Income/ Yield (a) /
Volume Expense Rate
Interest & Fee Income Earned
Total Earning Assets (FTE) $4,160,953 $50,094 4.80%
Total Loans (FTE) 2,263,239 32,434 5.70%
Commercial Loans (FTE) 457,644 6,731 5.85%
Commercial RE Loans 990,509 17,015 6.83%
Consumer Loans 815,086 8,688 4.24%
Total Investments (FTE) 1,897,714 17,660 3.72%
Interest Expense Paid
Total Earning Assets 4,160,953 1,382 0.13%
Total Interest-Bearing Liabilities 2,683,663 1,382 0.21%
Total Interest-Bearing Deposits 2,570,980 1,020 0.16%
Interest-Bearing Transaction 756,824 70 0.04%
Savings 1,125,286 231 0.08%
Time less than $100K 258,631 359 0.55%
Time greater than $100K 430,239 360 0.33%
Total Short-Term Borrowings 61,794 15 0.10%
Federal Home Loan Bank Advances 25,889 122 1.87%
Term Repurchase Agreement 10,000 25 0.97%
Debt Financing 15,000 200 5.35%
Net Interest Income and
Margin (FTE) $48,712 4.67%
6. Noninterest Income.
(dollars in thousands except per-share amounts)
%
Q3'13 Q3'12 Change Q2'13
Service Charges on Deposits $6,433 $6,847 -6.0% $6,452
Merchant Processing Services 2,151 2,411 -10.8% 2,413
Debit Card Fees 1,467 1,308 12.1% 1,478
ATM Processing Fees 701 782 -10.3% 721
Trust Fees 567 540 5.1% 585
Financial Services Commissions 150 175 -14.6% 284
Other Income 2,950 2,563 15.1% 2,351
Total Noninterest Income $14,419 $14,626 -1.4% $14,284
Total Revenue (FTE) $55,643 $63,338 -12.1% $56,912
Noninterest Income/Revenue (FTE) 25.9% 23.1% 25.1%
Service Charges/Avg. Deposits (a) 0.62% 0.65% 0.63%
Total Revenues (FTE) Per Avg.
Common Share (a) $8.28 $9.16 -9.6% $8.49
%
9/30'13YTD 9/30'12YTD Change
Service Charges on Deposits $19,427 $20,969 -7.4%
Merchant Processing Services 6,973 7,333 -4.9%
Debit Card Fees 4,302 3,816 12.7%
ATM Processing Fees 2,128 2,648 -19.6%
Trust Fees 1,720 1,526 12.7%
Financial Services Commissions 614 540 13.5%
Loss on Sale of Securities -- (1,287) n/m
Other Income 7,817 7,283 7.3%
Total Noninterest Income $42,981 $42,828 0.4%
Total Revenue (FTE) $170,668 $193,571 -11.8%
Noninterest Income/Revenue (FTE) 25.2% 22.1%
Service Charges/Avg. Deposits (a) 0.63% 0.66%
Total Revenues (FTE) Per Avg.
Common Share (a) $8.48 $9.31 -8.9%
7. Noninterest Expense.
(dollars in thousands)
%
Q3'13 Q3'12 Change Q2'13
Salaries & Benefits $13,826 $14,294 -3.3% $14,064
Occupancy 3,829 3,901 -1.8% 3,638
Outsourced Data Processing 2,139 2,156 -0.8% 2,140
Amortization of
Identifiable Intangibles 1,163 1,336 -13.0% 1,165
Professional Fees 730 786 -7.2% 745
Furniture & Equipment 974 991 -1.7% 1,021
Other Real Estate Owned 179 679 n/m 278
Courier Service 725 772 -6.0% 737
Other Operating 4,193 4,354 -3.7% 4,404
Total Noninterest Expense $27,758 $29,269 -5.2% $28,192
Noninterest Expense/
Avg. Earning Assets (a) 2.69% 2.80% 2.73%
Noninterest Expense/Revenues (FTE) 49.9% 46.2% 49.5%
%
9/30'13YTD 9/30'12YTD Change
Salaries & Benefits $42,293 $43,833 -3.5%
Occupancy 11,353 11,609 -2.2%
Outsourced Data Processing 6,436 6,318 1.9%
Amortization of
Identifiable Intangibles 3,547 4,076 -13.0%
Professional Fees 2,109 2,455 -14.1%
Furniture & Equipment 2,875 2,883 -0.3%
Other Real Estate Owned 791 912 -13.3%
Courier Service 2,204 2,350 -6.2%
Other Operating 13,019 14,215 -8.4%
Total Noninterest Expense $84,627 $88,651 -4.5%
Noninterest Expense/
Avg. Earning Assets (a) 2.74% 2.88%
Noninterest Expense/Revenues (FTE) 49.6% 45.8%
8. Provision for Loan Losses.
(dollars in thousands)
%
Q3'13 Q3'12 Change Q2'13
Average Total Loans $1,902,389 $2,263,239 -15.9% $1,994,361
Avg. Total Purchased
Covered Loans (1) 310,650 435,953 -28.7% 341,896
Avg. Total Purchased
Non-Covered Loans (2) 59,145 97,100 -39.1% 66,030
Avg. Total Originated Loans 1,532,594 1,730,186 -11.4% 1,586,435
Allowance for Loan Loss (ALL)
Beginning of Period $30,926 $31,523 -1.9% $30,354
Provision for Loan Losses 1,800 2,800 -35.7% 1,800
Net ALL Losses (810) (3,357) -75.9% (1,228)
ALL End of Period $31,916 $30,966 3.1% $30,926
ALL Recoveries/Gross ALL Losses 53% 28% 42%
Net ALL Losses/Avg. Loans:
Originated Loans (a) 0.20% 0.63% 0.15%
Purchased Covered Loans (1)(a) 0.02% 0.09% 0.59%
Purchased Non-Covered Loans (2)(a) 0.00% 2.19% 0.71%
%
9/30'13YTD 9/30'12YTD Change
Average Total Loans $1,990,937 $2,368,530 -15.9%
Avg. Total Purchased
Covered Loans (1) 338,597 475,815 -28.8%
Avg. Total Purchased
Non-Covered Loans (2) 65,926 107,989 -39.0%
Avg. Total Originated Loans 1,586,414 1,784,726 -11.1%
Allowance for Loan Loss (ALL)
Beginning of Period $30,234 $32,597 -7.2%
Provision for Loan Losses 6,400 8,400 -23.8%
Net ALL Losses (4,718) (10,031) -53.0%
ALL End of Period $31,916 $30,966 3.1%
ALL Recoveries/Gross ALL Losses 38% 26%
Net ALL Losses/Avg. Loans:
Originated Loans (a) 0.31% 0.66%
Purchased Covered Loans (1)(a) 0.34% 0.19%
Purchased Non-Covered Loans (2)(a) 0.24% 0.69%
9. Credit Quality.
(dollars in thousands)
%
9/30/13 9/30/12 Change 6/30/13
Nonperforming Originated Loans:
Nonperforming Nonaccrual $5,786 $9,870 -41.4% $7,664
Performing Nonaccrual 1,093 3,169 -65.5% 1,272
Total Nonaccrual Loans 6,879 13,039 -47.2% 8,936
90+ Days Past Due Accruing Loans 392 433 -9.5% 241
Total 7,271 13,472 -46.0% 9,177
Repossessed Loan Collateral 3,162 11,539 -72.6% 5,414
Total Originated
Nonperforming Assets 10,433 25,011 -58.3% 14,591
Nonperforming Purchased Covered Loans (1):
Nonperforming Nonaccrual 24,348 19,584 24.3% 14,619
Performing Nonaccrual 1,937 1,014 91.0% 2,204
Total Nonaccrual Loans 26,285 20,598 27.6% 16,823
90+ Days Past Due Accruing Loans 23 59 -61.0% 74
Total 26,308 20,657 27.4% 16,897
Repossessed Purchased Covered
Loan Collateral (1) 9,273 12,437 -25.4% 10,480
Total Nonperforming Purchased
Covered Assets (1) 35,581 33,094 7.5% 27,377
Nonperforming Purchased Non-Covered Loans (2):
Nonperforming Nonaccrual 2,664 7,823 -65.9% 1,890
Performing Nonaccrual 701 2,260 -69.0% 3,013
Total Nonaccrual Loans 3,365 10,083 -66.6% 4,903
90+ Days Past Due Accruing Loans -- 1 n/m --
Total 3,365 10,084 -66.6% 4,903
Repossessed Purchased Non-Covered
Loan Collateral (2) 2,535 3,303 -23.3% 3,543
Total Nonperforming Purchased
Non-Covered Assets (2) 5,900 13,387 -55.9% 8,446
Total Nonperforming Assets $51,914 $71,492 -27.4% $50,414
Total Originated Loans Outstanding $1,523,090 $1,708,414 -10.8% $1,553,303
Total Purchased Covered
Loans Outstanding (1) 296,380 418,364 -29.2% 324,976
Total Purchased Non-Covered
Loans Outstanding (2) 57,838 82,676 -30.0% 61,062
Total Loans Outstanding $1,877,308 $2,209,454 -15.0% $1,939,341
Total Assets $4,806,487 $4,859,627 -1.1% $4,813,908
Originated Loans:
Allowance for Loan Losses $31,916 $30,966 3.1% $30,926
Allowance/Originated Loans 2.10% 1.81% 1.99%
Nonperforming Originated Loans/
Total Originated Loans 0.48% 0.79% 0.59%
Allowance/Nonperforming
Originated Loans 439% 230% 337%
Purchased Covered Loans (1):
Fair Value Discount on Purchased
Covered Loans $14,489 $27,241 $18,514
Discount/Purchased Covered
Loans, gross 4.66% 6.11% 5.39%
Nonperforming Purchased Covered Loans/
Total Purchased Covered Loans 8.88% 4.94% 5.20%
Purchased Non-Covered Loans (2):
Fair Value Discount on Purchased
Non-Covered Loans $2,989 $5,495 $3,609
Discount/Purchased Non-Covered 4.91% 6.23% 5.58%
Loans, gross
Nonperforming Purchased Non-Covered Loans/
Total Purchased Non-Covered Loans 5.82% 12.20% 8.03%
10. Capital.
(in thousands, except per-share amounts)
%
9/30/13 9/30/12 Change 6/30/13
Shareholders' Equity $541,840 $558,841 -3.0% $544,622
Tier I Regulatory Capital 404,189 407,881 -0.9% 405,851
Total Regulatory Capital 442,920 442,399 0.1% 443,052
Total Assets 4,806,487 4,859,627 -1.1% 4,813,908
Risk-Adjusted Assets 2,769,664 2,726,803 1.6% 2,772,900
Shareholders' Equity/
Total Assets 11.27% 11.50% 11.31%
Shareholders' Equity/
Total Loans 28.86% 25.29% 28.08%
Tier I Capital/Total Assets 8.41% 8.39% 8.43%
Tier I Capital/
Risk-Adjusted Assets 14.59% 14.96% 14.64%
Total Regulatory Capital/
Risk-Adjusted Assets 15.99% 16.22% 15.98%
Tangible Common Equity Ratio 8.58% 8.75% 8.61%
Common Shares Outstanding 26,578 27,396 -3.0% 26,769
Common Equity Per Share $20.39 $20.40 -0.1% $20.34
Market Value Per Common Share $49.74 $47.05 5.7% $45.69
Share Repurchase Programs
(shares in thousands)
%
Q3'13 Q3'12 Change Q2'13
Total Shares Repurchased 256 270 -5.4% 270
Average Repurchase Price $48.48 $46.63 4.0% $44.29
Net Shares Repurchased 191 225 -15.1% 249
%
9/30'13YTD 9/30'12YTD Change
Total Shares Repurchased 873 836 4.3%
Average Repurchase Price $45.59 $46.25 -1.4%
Net Shares Repurchased 635 754 -15.8%
11. Period-End Balance Sheets.
(unaudited, dollars in thousands)
%
9/30/13 9/30/12 Change 6/30/13
Assets:
Cash and Due from Banks $388,579 $367,964 5.6% $384,276
Investment Securities:
Available For Sale 1,060,428 738,462 43.6% 1,004,888
Held to Maturity 1,141,083 1,158,731 -1.5% 1,134,615
Purchased Covered Loans (1) 296,380 418,364 -29.2% 324,976
Purchased Non-Covered Loans (2) 57,838 82,676 -30.0% 61,062
Originated Loans 1,523,090 1,708,414 -10.8% 1,553,303
Allowance For Loan Losses (31,916) (30,966) 3.1% (30,926)
Total Loans, net 1,845,392 2,178,488 -15.3% 1,908,415
Non-Covered Other Real Estate
Owned 5,697 14,842 -61.6% 8,957
Covered Other Real Estate
Owned (1) 9,273 12,437 -25.4% 10,480
Premises and Equipment, net 37,972 38,386 -1.1% 38,267
Identifiable Intangibles, net 19,714 24,553 -19.7% 20,877
Goodwill 121,673 121,673 0.0% 121,673
Other Assets 176,676 204,091 -13.4% 181,460
Total Assets $4,806,487 $4,859,627 -1.1% $4,813,908
Liabilities and Shareholders' Equity:
Deposits:
Noninterest Bearing $1,689,986 $1,594,379 6.0% $1,644,151
Interest-Bearing Transaction 737,029 745,852 -1.2% 725,852
Savings 1,150,219 1,133,788 1.4% 1,139,110
Time 531,073 656,538 -19.1% 592,281
Total Deposits 4,108,307 4,130,557 -0.5% 4,101,394
Short-Term Borrowed Funds 47,821 55,630 -14.0% 66,640
Federal Home Loan Bank Advances 25,631 25,855 -0.9% 25,687
Term Repurchase Agreement 10,000 10,000 0.0% 10,000
Debt Financing 15,000 15,000 0.0% 15,000
Other Liabilities 57,888 63,744 -9.2% 50,565
Total Liabilities 4,264,647 4,300,786 -0.8% 4,269,286
Shareholders' Equity:
Common Equity:
Paid-In Capital 373,799 374,312 -0.1% 374,209
Accumulated Other
Comprehensive Income 4,120 14,454 -71.5% 4,524
Retained Earnings 163,921 170,075 -3.6% 165,889
Total Shareholders' Equity 541,840 558,841 -3.0% 544,622
Total Liabilities and
Shareholders' Equity $4,806,487 $4,859,627 -1.1% $4,813,908
12. Income Statements.
(unaudited, in thousands except per-share amounts)
%
Q3'13 Q3'12 Change Q2'13
Interest & Fee Income:
Loans $25,116 $31,779 -21.0% $26,180
Investment Securities:
Available for Sale 5,426 4,918 10.3% 5,532
Held to Maturity 7,414 8,575 -13.5% 7,557
Total Interest & Fee Income 37,956 45,272 -16.2% 39,269
Interest Expense:
Transaction Deposits 66 70 -5.5% 64
Savings Deposits 228 231 -1.3% 228
Time Deposits 515 719 -28.4% 555
Short-Term Borrowed Funds 20 15 31.1% 26
Federal Home Loan Bank Advances 122 122 0.4% 120
Term Repurchase Agreement 25 25 0.0% 25
Debt Financing 200 200 0.0% 201
Total Interest Expense 1,176 1,382 -14.9% 1,219
Net Interest Income 36,780 43,890 -16.2% 38,050
Provision for Loan Losses 1,800 2,800 -35.7% 1,800
Noninterest Income:
Service Charges 6,433 6,847 -6.0% 6,452
Merchant Processing Services 2,151 2,411 -10.8% 2,413
Debit Card Fees 1,467 1,308 12.1% 1,478
ATM Processing Fees 701 782 -10.3% 721
Trust Fees 567 540 5.1% 585
Financial Services Commissions 150 175 -14.6% 284
Other 2,950 2,563 15.1% 2,351
Total Noninterest Income 14,419 14,626 -1.4% 14,284
Noninterest Expense:
Salaries and Benefits 13,826 14,294 -3.3% 14,064
Occupancy 3,829 3,901 -1.8% 3,638
Outsourced Data Processing 2,139 2,156 -0.8% 2,140
Amortization of Identifiable Intangibles 1,163 1,336 -13.0% 1,165
Professional Fees 730 786 -7.2% 745
Equipment 974 991 -1.7% 1,021
Other Real Estate Owned 179 679 -73.7% 278
Courier Service 725 772 -6.0% 737
Other 4,193 4,354 -3.7% 4,404
Total Noninterest Expense 27,758 29,269 -5.2% 28,192
Income Before Income Taxes 21,641 26,447 -18.2% 22,342
Income Tax Provision 4,903 6,425 -23.7% 5,230
Net Income $16,738 $20,022 -16.4% $17,112
Average Common Shares Outstanding 26,670 27,513 -3.1% 26,890
Diluted Common Shares Outstanding 26,705 27,565 -3.1% 26,898
Per Common Share Data:
Basic Earnings $0.63 $0.73 -13.7% $0.64
Diluted Earnings 0.63 0.73 -13.7% 0.64
Dividends Paid 0.37 0.37 0.0% 0.37
%
9/30'13YTD 9/30'12YTD Change
Interest & Fee Income:
Loans $78,696 $101,180 -22.2%
Investment Securities:
Available for Sale 16,293 14,644 11.3%
Held to Maturity 22,701 24,646 -7.9%
Total Interest & Fee Income 117,690 140,470 -16.2%
Interest Expense:
Transaction Deposits 196 238 -17.6%
Savings Deposits 686 696 -1.4%
Time Deposits 1,673 2,380 -29.7%
Short-Term Borrowed Funds 58 63 -9.0%
Federal Home Loan Bank Advances 360 361 -0.1%
Term Repurchase Agreement 73 74 -1.1%
Debt Financing 601 601 0.0%
Total Interest Expense 3,647 4,413 -17.4%
Net Interest Income 114,043 136,057 -16.2%
Provision for Loan Losses 6,400 8,400 -23.8%
Noninterest Income:
Service Charges 19,427 20,969 -7.4%
Merchant Processing Services 6,973 7,333 -4.9%
Debit Card Fees 4,302 3,816 12.7%
ATM Processing Fees 2,128 2,648 -19.6%
Trust Fees 1,720 1,526 12.7%
Financial Services Commissions 614 540 13.5%
Loss on Sale of Securities -- (1,287) n/m
Other 7,817 7,283 7.3%
Total Noninterest Income 42,981 42,828 0.4%
Noninterest Expense:
Salaries and Benefits 42,293 43,833 -3.5%
Occupancy 11,353 11,609 -2.2%
Outsourced Data Processing 6,436 6,318 1.9%
Amortization of Identifiable Intangibles 3,547 4,076 -13.0%
Professional Fees 2,109 2,455 -14.1%
Equipment 2,875 2,883 -0.3%
Other Real Estate Owned 791 912 -13.3%
Courier Service 2,204 2,350 -6.2%
Other 13,019 14,215 -8.4%
Total Noninterest Expense 84,627 88,651 -4.5%
Income Before Income Taxes 65,997 81,834 -19.4%
Income Tax Provision 14,876 19,843 -25.0%
Net Income $51,121 $61,991 -17.5%
Average Common Shares Outstanding 26,900 27,769 -3.1%
Diluted Common Shares Outstanding 26,919 27,821 -3.2%
Per Common Share Data:
Basic Earnings $1.90 $2.23 -14.8%
Diluted Earnings 1.90 2.23 -14.8%
Dividends Paid 1.11 1.11 0.0%
Footnotes and Abbreviations:
(FTE) Fully Taxable Equivalent
(a) Annualized
(1) Purchased covered loans represent purchased loans on which losses are shared with the FDIC per a Loss Sharing Agreement. Purchased covered loans were recorded at estimated fair value at February 6, 2009, the date of purchase.
(2) Purchased non-covered loans represent purchased loans recorded at estimated fair value at August 20, 2010, the date of purchase.

CONTACT: For additional information contact: Westamerica Bancorporation Robert A. Thorson - SVP & Chief Financial Officer 707-863-6840

Source:Westamerica Bancorporation